Written answers

Tuesday, 20 November 2012

Department of Finance

National Pensions Reserve Fund

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Question No. 314 of 18 September 2012, if he will clarify the present valuation of Permanent TSB, noting that its free circulation shares are currently trading at two to three cents each; if he will confirm if any recent valuation of the company, other than a valuation based exclusively on the current share price, has been undertaken, and if so, if he will provide the results of that valuation and the present valuation of the State’s interest in Irish Life and the basis for the valuation. [51139/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I invested on behalf of the State €2.3 billion in Permanent TSB Group Holdings (formerly Irish Life & Permanent Group Holdings) in July 2011 in return for 36,249,014,972 ordinary shares (at an issue price of €0.06345 per share), amounting to 99.24% of the shares in issue. The shares are held at their nominal value in the Finance Accounts. Permanent TSB plc also issued €0.4 billion of convertible contingent capital notes, with an annual coupon of 10%, to the Government as part of the recapitalisation of the Group. Interest payments of €40 million were received by the State in July 2012.

As the Deputy will be aware, the State paid consideration of €1.3 billion to acquire a 100% interest in Irish Life in June 2012. The shares are held at this value in the Finance Accounts and do not get revalued on a regular basis. In arriving at the consideration agreed in March 2012, we reviewed all information available to us from the sales process which was postponed in late 2011, developments since that time in Irish Life and the Irish economy, movements in industry peer group valuation multiples and improvements in bond yields, particularly in Ireland. We are not aware of any recent issues or events which would materially impact any valuation of Irish Life, positively or negatively, but cannot be definitive as the circumstances change on a continuous basis.

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Question Nos. 314 and 315 of 18 September 2012, if any more recent valuation of the National Pension Reserve Fund's interest in Allied Irish Banks and Bank of Ireland has been undertaken since the Goodbody valuation of the interests at an overall total of circa €8bn at 31 December 2011, in view of the results of both banks for the six months 30 June 2012 and if a more recent valuation has been undertaken, if he will provide the results of that valuation. [51140/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by the National Treasury Management Agency (NTMA), as Manager of the National Pensions Reserve Fund (NPRF), that no valuation of the shareholdings in Allied Irish Banks and preference share holdings in Bank of Ireland held by the National Pensions Reserve Fund in Allied Irish Banks and Bank of Ireland has been undertaken since the Goodbody valuation as at 31 December 2011, which was finalised in May 2012. The shareholdings are valued at fair value in accordance with the accounting policies adopted by the Fund. The NTMA is currently in the process of engaging an independent valuation adviser to provide an independent fair value of the NPRF's shareholdings in Allied Irish Banks and of its preference shareholdings in Bank of Ireland. This valuation forms part of the preparation of the Financial Statements and Annual Report for the Fund for the year ended 31 December 2012 and is expected to be completed in early 2013.

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